Corporate demand has driven a rise in captive insurance formations globally as businesses seek greater control and resilience, according to a report from Global Insurance Law Connect.

The 2026 GILC Captives Report identifies sustained premium increases, constrained underwriting capacity and growing risk complexity as key drivers. Once largely used by large multinationals, captives are increasingly being set up by mid-market corporates, public sector bodies and organisations in developing economies.

The hardening commercial insurance market since 2018 has been the main catalyst. Across Europe firms report sustained increases in formation activity. Spain alone estimates around 50% growth in demand over five years. Similar trends are evident in Australia, New Zealand, the US and Latin America, particularly in cyber, environmental liability and catastrophe-exposed property.

Gillian Davidson, chair of Global Insurance Law Connect, commented: “We are witnessing a structural shift in corporate risk financing. Captives are no longer viewed as niche vehicles for only the largest multinationals; they are increasingly central to enterprise risk strategy. The pace of adoption among mid-market and public sector organisations reflects sustained pressure in the commercial market and a clear desire for greater financial certainty.”

Caroline Wagstaff, chief executive of the London Market Group, and a captives advocate, added: “This report makes clear that captives are no longer peripheral tools for only the largest multinationals, they are rapidly becoming central to modern risk financing strategy. The UK’s forthcoming captive regime represents a major step forward, ensuring we retain and attract corporate capital that might otherwise move offshore. By introducing a proportionate, competitive and internationally aligned framework, the UK is positioning itself as a leading domicile for the next generation of captive growth.”

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